HomeEconomy, Finance and Market News

EU seeks unity in first strike back at Trump tariffs

U.S. and European Union flags are seen in this illustration taken March 20, 2025. REUTERS/Dado Ruvic/Illustration/File Photo 

European Union to Propose Targeted Countermeasures on U.S. Imports Amid Growing Trade Dispute

BRUSSELS — April 6, 2025 — European Union member states are preparing to present a united front against the recent tariffs imposed by U.S. President Donald Trump, with the bloc expected to approve initial countermeasures targeting up to $28 billion worth of American imports. The response would align the EU with China and Canada in retaliating against the U.S., intensifying concerns over a potential global trade war.

EU Counter-Tariffs to Cover Wide Range of U.S. Goods

The European Commission is expected to formally propose a list of U.S. products subject to retaliatory duties in response to Trump’s steel and aluminum tariffs. The targeted goods may include a variety of consumer and industrial products, such as meat, cereals, wine, timber, clothing, chewing gum, dental floss, vacuum cleaners, and toilet paper.

One high-profile item under discussion is bourbon, with the Commission considering a 50% tariff. The move has prompted President Trump to threaten a retaliatory 200% tariff on European alcoholic beverages. France and Italy, both significant wine exporters, have voiced concern over this potential escalation.

The EU faces a 25% tariff on exports of steel, aluminum, and vehicles, as well as a 20% reciprocal tariff on nearly all other goods starting Wednesday. These measures cover approximately 70% of EU exports to the United States, amounting to €532 billion ($585 billion) in 2024. Additional U.S. duties on copper, pharmaceuticals, semiconductors, and timber may be forthcoming.

Push for Unity and Negotiation

The European Commission, which manages trade policy for the bloc, is seeking to coordinate a measured and unified response. Luxembourg will host a meeting of EU trade ministers on Monday, the first political gathering since the tariffs were announced. The primary objective will be to agree on a collective message expressing a willingness to negotiate, while signaling readiness to retaliate if discussions with Washington fail.

“Our biggest fear after Brexit was bilateral deals and a break of unity, but through three or four years of negotiations, that did not happen. Of course, here you have a different story, but everyone can see an interest in a common commercial policy,” one EU diplomat stated.

Commission President Ursula von der Leyen is also scheduled to hold consultations with executives from the steel, automotive, and pharmaceutical sectors on Monday and Tuesday to assess the potential impact of the U.S. tariffs and inform the bloc’s next steps.

Diverging Views Within the EU

Although the EU aims to maintain cohesion, member states differ in their views on how strongly to respond. France has called for a broader strategy beyond tariffs, with President Emmanuel Macron suggesting a pause in European investment in the United States until the situation becomes clearer.

Ireland, which sends nearly one-third of its exports to the U.S., has urged a “considered and measured” approach. Italy, the EU’s third-largest exporter to the U.S., has questioned whether retaliatory measures are the right course of action.

“It’s a difficult balance,” said one EU diplomat. “Measures cannot be too soft to bring the United States to the table, but not too tough to lead to escalation.”

Next Steps and Timeline

The Commission’s initial proposal is expected to be put to a vote on Wednesday. Approval is likely unless a qualified majority—15 of the 27 member states representing at least 65% of the EU population—votes against it, an outcome considered improbable.

If adopted, the tariffs would be implemented in two phases: an initial set on April 15, followed by additional measures one month later.

The outcome of these discussions and the EU’s final response may play a critical role in determining whether the dispute escalates into a wider economic conflict or prompts a return to negotiations.

Subscribe to our newsletter

COMMENTS